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U.S. Energy Corp. Announces Redemption of All Outstanding Series A Convertible Preferred Stock
HOUSTON, Jan. 07, 2021 (GLOBE NEWSWIRE) -- U.S. Energy Corp. (NASDAQCM: USEG) (“We”, “U.S. Energy” or the “Company”) today announced that it has redeemed all
About this update from U.s. Energy Corp.
[{"type":"text","content":"HOUSTON, Jan. 07, 2021 (GLOBE NEWSWIRE) -- U.S. Energy Corp. (NASDAQCM: USEG) (“We”, “U.S. Energy” or the “Company”) today announced that it has redeemed all of its issued and outstanding Series A Convertible Preferred Stock (“Preferred Stock”) in exchange for a combination of cash and common stock pursuant to the terms of an Exchange Agreement. Management Comments “Completing the redemption of our outstanding Preferred Stock represents a tremendous milestone in the continued growth of U.S. Energy,” said Ryan Smith, U.S. Energy’s Chief Executive Officer. “This transaction further strengthens U.S. Energy’s already strong balance sheet while opening up a wide range of attractive opportunities for the Company to pursue, due to our simplified capital structure. The Preferred Stock has been a significant burden on the Company’s balance sheet for years and we are pleased to reach an agreement that continues building equity value for U.S. Energy’s common shareholders.” Transaction Summary On December 31, 2020, U.S. Energy entered into and closed an Exchange Agreement with the holder of its existing Series A Convertible Preferred Stock, which had a liquidation preference of approximately $3.5mm at September 30, 2020, and accrued quarterly dividends of 12.25% per annum. Pursuant to the Exchange Agreement, the Preferred Stock was redeemed in exchange for $2.0mm in cash and 328,000 shares of U.S. Energy common stock. As a result of the Exchange Agreement, the Company no longer has any Series A Convertible Stock issued or outstanding and the Investor Rights Agreement by and between U.S. Energy and the holder of the Preferred Stock has been terminated. About U.S. Energy Corp. We are an independent energy company focused on the acquisition and development of oil and gas producing properties in the United States. Our business is currently focused on targeting mature, low decline assets with existing infrastructure that allows us to maximize our return on capital in a sustainable and efficient manner. More information about U.S. Energy Corp. can be found at www.usnrg.com. Forward-Looking Statements This press release may include “forward-looking statements” within the meaning of, and within the safe harbor provided by the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of hist...